California Weighs Airbnb, Vrbo Tax for Affordable Housing

California is considering a tax on short-term rentals like those from Airbnb and Vrbo to combat the affordable housing crisis in the state.

California vacation home for Airbnb Vrbo affordable housing tax
(Image credit: Getty Images)

California lawmakers are considering taxing short-term rentals (think Airbnb and Vrbo) to help fund affordable housing initiatives. The proposed tax measure comes as insurers Allstate and State Farm pull back on new business in California, and the Golden State struggles with a housing crisis fueled by supply and demand challenges and a lack of affordability.

Bill sponsor state Sen. Monique Limón (D-Santa Barbara) told local news outlet CalMatters, that she is often asked by local cities and counties about affordable housing.  Limón says people wonder “Where is the money to build the housing?” 

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Kelley R. Taylor
Senior Tax Editor,

As the senior tax editor at, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.